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Weekly Wireless Report November 18, 2016

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Weekly Wireless Report November 18, 2016 Week Ending: Weekly Wireless Report November 18, 2016 This Week’s Stories AOL Laying Off More Than 5% Of Workforce, Unrelated To Inside This Issue: Verizon’s Yahoo Bid November 17, 2016 This Week’s Stories AOL Laying Off More Than Verizon-owned AOL said it will cut 500 jobs, or more than 5% of its global workforce, but said the 5% Of Workforce, Unrelated layoffs are independent of the telco’s proposed $4.8 billion takeover of Yahoo. To Verizon’s Yahoo Bid An AOL rep confirmed the cutbacks, first reported by Re/code, but declined to comment further. A Closer Look At Trump On When (or if) Verizon completes the Yahoo deal, additional layoffs are expected at both AOL and Tech And Wireless Yahoo. Products & Services AOL chief Tim Armstrong, in an interview with Re/code, said most of the layoffs will come in the AT&T Launches Texting internet media company’s corporate units, and that the reorg is designed to bulk up staff in mobile, With Amazon’s Alexa On video and data groups. Echo Apple Will Reportedly Cut In a memo to AOL employees Thursday, Armstrong positioned the cuts as a move to streamline the App Store Fees In Half For company after it added more than 1,500 employees over the past year through the acquisition of Video Services mobile-ad vendor Millennial Media and the bulk of Microsoft’s advertising operations. “The changes we are making are about setting the company on a path to successfully operating in today and Emerging Technology tomorrow’s reality,” Armstrong wrote in the memo, which was published by AOL-owned TechCrunch. Instagram Sees Shopping As The Next Step In Its Verizon bought AOL for $4.4 billion in 2015, with the strategy of combining ad tech and content (from Evolution properties like the Huffington Post, TechCrunch and Engadget) with its wireless, broadband and TV footprint. Qualcomm Quick Charge To Give Phones 5-Hour Charge This summer Verizon announced plans to buy Yahoo — aiming merge AOL and Yahoo to gain even In 5 Minutes greater advertising scale across mobile, web and video users. Mergers & Acquisitions But in September, Yahoo disclosed that a hack in late 2014 had resulted in the theft of data on more DraftKings And FanDuel than 500 million user accounts. That breach, which Verizon’s top lawyer said represented a material Agree To Merge, Creating A event, has led the telco to reevaluate the terms of the Yahoo deal and reportedly seek to lop $1 Fantasy Sports Giant billion off the price tag. AT&T Teams Up With NASA Last week, Yahoo disclosed in its quarterly filing with the SEC that employees knew about the hack To Develop Drone Traffic when it occurred two years ago. That was after the company claimed in a proxy statement in Management System September that it had no knowledge of any security breaches. Yahoo also said it recorded expenses of $1 million related to the security incident for the third quarter of 2016. Verizon Acquires Space Age Wi-Fi Kiosk Maker LQD The massive data theft has spawned 23 putative class-action lawsuits in U.S. federal and state courts Industry Reports and in foreign courts seeking monetary damages, according to Yahoo’s 10-Q filed on Nov. 9. Samsung Still No. 1 Smartphone Maker Despite variety.com Note 7 Woes Connect with us Visit our website www.ksrinc.com Pag e | 2 A Closer Look At Trump On Tech And Wireless November 15, 2016 Despite previous tangles with U.S. President-Elect Donald Trump on Twitter, T-Mobile CEO John “Trump does not appear to Legere on Friday issued a statement encouraging the American people to come together and carry on have public positions on a in the wake of shocking election upset that has spurred protests across the country. number of issues critical to the wireless telecom “During times of change we can either stand up, unite and support one another – or tear down and industry, including 5G, patent attack one another. I am asking you to unite,” Legere said. “This election stunned the world. But we reform, infrastructure are all citizens of one of the greatest countries in the world and the people here at T-Mobile are some of the best in America. If anyone can lead by example and support each other through this transition, investment, and spectrum it is all of you.” policy.” Verizon CEO Lowell McAdam last week also called for unity, saying the country should focus on "building and rebuilding infrastructure and promoting the deployment of a digital superhighway to support game-changing innovation that makes lives better." But the path forward for the telecom industry appears murkier than most thanks to a dearth of information about Trump’s positions on technology and wireless. As of June of this year, Trump had not released a detailed technology policy proposal on his campaign website. On Monday, however, the site did include a section on cybersecurity in which Trump said he would “order an immediate review of all U.S. cyber defenses and vulnerabilities, including critical infrastructure, by a Cyber Review Team of individuals from the military, law enforcement, and the private sector.” But beyond cybersecurity, Trump does not appear to have public positions on a number of issues critical to the wireless telecom industry, including 5G, patent reform, infrastructure investment, and spectrum policy. In an October 2015 interview with Breitbart Tech, Trump said he is a “big believer in technology” and “will be a strong supporter of expanding tech capabilities in the United States.” Trump, however, noted he thinks the “increased dependence and addiction to electronic devices is unhealthy,” but said he believes “we will find a balance” as technology trends continue to progress. Since that time, there has been little update on Trump’s thoughts on tech. According to a recent report from the Information Technology & Innovation Foundation (ITIF), Trump has not put forth any position on wireless spectrum, 5G, or the Communications Act update. On Title II and Net neutrality, ITIF found Trump has not put forth a proposal, but has in the past criticized the FCC’s Net neutrality order on Twitter as “another top down power grab.” ITIF also found Trump has expressed opinions in favor of forcing companies to help crack encrypted devices as when the FBI asked Apple for help accessing the San Bernardino shooter’s iPhone. Wells Fargo Senior Analyst Jennifer Fritzsche in a note to investors last week said much of the future for telecom under a Trump administration hinges on who he appoints to head the FCC. “If the rhetoric of those surrounding Trump's campaign rings true, we can expect a Republican FCC to make a big push to roll back some of the regulations put in place under President Obama such as the Title II/Net Neutrality rules,” Fritzsche wrote. “There may also be a push to roll back some or all of what the FCC just did on privacy. It's unclear whether Chairman Wheeler will be able to act on the open items related to Business Data Services or set-top box reform before he departs and if he does not, some suggest a Republican FCC will reverse course on these two items.” Connect with us Visit our website www.ksrinc.com Pag e | 3 While Fritzsche said Trump's presidency also raises questions about some big transactions – like the AT&T-Time Warner hookup and the Level 3-CenturyLink deal – one thing that shouldn’t be too much in the air is spectrum policy. “Spectrum policy is generally bipartisan whereby both parties agree that more spectrum is needed to support growing network usage,” Fritzsche wrote. “We believe that regulators no matter their party affiliation believe that 5G is a game changing technology and will do what it takes to support that evolution. We expect there will be an even greater focus among a Republican House, Senate and White House to raise more general revenues through spectrum auctions; however, it's unclear whether the industry's efforts to pry higher band spectrum away from government users will be more or less difficult under a Republican administration.” wirelessweek.com Products & Services AT&T Launches Texting With Amazon’s Alexa On Echo November 17, 2016 AT&T on Thursday unveiled a new capability for customers using Amazon’s Echo smart home hub: “‘AT&T is the first carrier to texting. bring this unique skill to a Starting tomorrow, the carrier said AT&T customers will be able to send a text message to up to ten product already known for frequent contacts using only voice commands given to Alexa, Echo’s virtual assistant. AT&T said it is innovation. We’re always the first carrier to offer the capability to Amazon Echo users. working to bring simple solutions for our customers “Amazon Echo is ahead of the curve in terms of voice recognition technology and functionality,” to stay in touch.’” AT&T’s Senior Vice President of Device and Network Services Marketing Jeff Bradley said. “AT&T is the first carrier to bring this unique skill to a product already known for innovation. We’re always working to bring simple solutions for our customers to stay in touch. In the tradition of NumberSync, another solution that was introduced at AT&T first, the Send Message Skill gives our customers another easy and convenient way to communicate.” The new capability tacks one more on to the list of Alexa’s existing repertoire, which also includes the ability to play music and provide information on news, sports scores, and the weather.
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